1st November 2016
Market Comment – November 2016
I am happy to report that the housing market in September officially bounced back according to the Bank of England figures. A total of 62,932 house purchases worth 11.1 billion pounds were approved in September as opposed to 60,984 in August. It is slightly down on the previous 6 months average 64,841 but this was boosted due to stamp duty rates changing on the 1st April.
Mortgage rates have remained a record low and as I write to you, new rates such as 0.98% have been unveiled with the Yorkshire Building Society, 0.98% with the Monmouthshire Building Society and 0.99% with HSBC and to me these unprecedented low rates prove that there is a real appetite for UK lenders.
On another positive note, two of our offices had their best sales month ever in October with already an overflow into November which is going to be good news for our last quarter figures. Analysing the figures and statistics for the properties that our group sold in October, it is very split between flats and houses although there was a big 6% leap on the previous month on new first time buyers registering.
Another nationwide statistic that I read recently was that the average UK home was on the market 91 days up 33 days from 58 days in 2012 according to the post office. Interestingly enough across our group our average time on the market is enormously lower at only 31 days, two thirds lower than the national average and I hope that this gives our existing and clients to be, good confidence.
The average price of a home in the United Kingdom has risen 8% over the last year surpassing £200,000 for the first time which is another interesting statistic that I read.
Turning to the lettings market, this has been steady through the last 3 months with no movements in rent, a slight increase in prospective tenants registering between 1 and 2% on the month before and interestingly although there are still 5 tenants for every property, tenants are tending to look at a few more properties before making a decision and this has resulted in a more steady but solid lettings market in Croydon.
As we get closer to the Whitgift Centre’s last Christmas, Box Park opens and the prime minister has announced that we will be out of the EU no later than April 2019, there has been a upturn in investment interest in Croydon and I readily expect to see that flow go through out the rest of this year and into 2017 and for any doubters, you just have to look at the cranes and the buildings surrounding East Croydon station. I also have first-hand knowledge that all the apartments at the Morello department by Redrow Menta homes area now under offer. A great success for Craig Marks of Redrow Menta and his team.
Early November brings not only firework night but the opening of Boxpark East Croydon and of course the American election so plenty to talk about both locally, nationally and internationally.
I suspect that November will be as steady and solid as October and I am looking forward to the last quarter of 2016 and will of course report back to you at the beginning December.